Microhoo or Screw You? - Yahoos Option 3

3. Do Something Magical
With Yahoo's second-largest shareholder Legg Mason all but blessing the deal, Yahoo's management may have a tough time convincing the shareholders to stick with it. Yahoo needs to do something to make shareholders believe it can bring back the glory days. Okay, here's one gamble: Fire Jerry Yang, who isn't exactly General Patton, and hire a fresh CEO. Scott McNealy? Eric Schmidt?

Since the ink dried on Microsoft's original $44.6 billion purchase offer for Yahoo on Jan. 31, Yahoo has been turning every which way for help, wheeling and dealing to avoid becoming the rival software giant's lunch. Here are some scenarios-